Tradies make up just 2.5 per cent of skilled temporary workforce visas

JUST 2.5 per cent of the 166,830 skilled migrants are tradies – despite a crying need for their skills to solve the housing crisis.

The stark mismatch between Australia’s skilled migration intake and the needs of the sector is now under the spotlight.

New data confirms how few overseas workers are filling critical trade roles.

“Of the 166,830 temporary skilled workers in Australia at the end of 2024, only 4,229 – or 2.5 per cent – were in home building trade occupations,” said Housing Industry Association Chief Economist Tim Reardon.

That means more than 97 per cent of skilled migrants are working in other sectors, while demand for trades in home building continues to outstrip supply.

“A sustainable workforce means promoting construction careers to all Australians and supporting the apprentices, training providers and employers who help build the industry,” he said.

“Without structural reform, we won’t just miss our housing targets — we’ll deepen the crisis.”

The data appears in the HIA Trades Report, which provides a quarterly review of the availability of skilled trades and any demand pressures on trades operating in the residential building industry.

“Despite the low volume of home building, skills shortages are persisting on the back of labour demands from other construction sectors and the wider economy,” Mr Reardon said.

“Excluding the extremes of the pandemic, one would have to go back to before the GFC to find trades shortages as acute as they are now.”

“Home building is set to gain momentum across Australia as interest rates fall, and this will further add to demand for skilled labour.”

“Activity has already been increasing in Western Australia, Queensland and South Australia on the back of strong population growth, low unemployment, tight rental markets and rising prices, and recovering real incomes.”

“The shortage of skilled trades across Australia persists in every capital city and region.”

“An increase in home building will further add to demand for skilled labour and put further upward pressure on labour prices.”

“Despite the expected increase in home building, commencements will remain well below those necessary to achieve 1.2 million homes over five years.”

“Home building activity has contracted significantly in the Sydney basin, Melbourne and the ACT, but even this has not been sufficient to arrest the rise in trades prices nationally.”

“The result of these shortages is that the price of trades has increased again by 5.5 per cent in the 12 months to March 2025, compared to the broader Australian wage growth closer to 3 per cent.”

“Reforms to skilled migration, including a dedicated construction visa, are needed to attract skilled tradespeople from overseas during cyclical peaks in activity.”

“Over the medium-to-long term, a domestic workforce development strategy is required that promotes careers in construction to students, recent leavers and Australians more broadly, male and female, young and old.”

“Greater support is also needed for apprentices, the public and private organisations that train them, and the businesses that provide them with supervision and on-site experience,” Mr Reardon concluded.